In a scene cut from the episode, K.I.T.T. tells Devon and April how distressed he is that Michael has lost his memory. If he were to experience file loss, he would just switch to an alternate data bank.
Brief flashbacks of K.I.T.T. were intended in the first act, although ultimately they weren't included. As Cara drives away from Michael after giving him the wallet and gun, his memory flashes on K.I.T.T. peeling away in like fashion, and the KNIGHT license plate.
A montage was originally intended to bridge the scenes between Michael's accident and his reawakening in the hospital. He sees the gears in the dam's hydraulic room, hears himself calling for K.I.T.T., and sees paramedics arriving.
According to the script, the newspaper item on Michael Long begins: "POLICE OFFICER VANISHES, PRESUMED DEAD. Officer Michael Long was presumed dead today when his car was found in the desert...."
The dam is the same one used in the KT episode, "Redemption Of A Champion:", the movie "Grease" utilizes this "unique scenery" location, as well.